Bangalore: Indian Space Research Organisation (ISRO) and Boeing Satellite Systems have reached a broad agreement to jointly develop and market two-tonne class communication satellites for third countries, a top ISRO official said.

ISRO chairman G Madhavan Nair told in Bangalore that Boeing has a few proposals, which it is evaluating for the purpose of joint collaboration with the Indian space agency in this context.

"We have come to a broad agreement with Boeing," he said, adding, a formal pact would be signed with the American company soon, with Government approvals required at hand.

The Bush administration had recently approved a license authorising Boeing to engage in discussions and share data with ISRO on the division of responsibilities for possible joint cooperation in the development and marketing of communication satellites.

"We have exchanged some notes. But the concrete proposal has to come from the US side now. I have told Boeing to find a customer. They say they are trying to look around. They are having a few proposals. When that's sharply tuned, we will take it up," the ISRO chairman said.

He said under the agreement, Boeing would make use of ISRO's satellite bus and some of the former's payload components would be integrated into it and that would then be launched for a third country.

Satellites that Boeing and ISRO plan to build for the global market are similar to INSAT class spacecraft that the Indian space agency had been developing over the years, ISRO officials said.

Cost of building such a satellite would depend on the composition of the spacecraft. On the "smaller side" it could be around Rs 150 crore and if powerful transponders are to be fitted, it could be around Rs 400 crore, estimates Nair.

Meanwhile, he said ISRO has completed technical discussions with Raytheon on establishing in India a ground system for GPS (global positioning system) augmentation, required for aircraft navigation.

"Government approval from their (Raytheon) side is yet to come. We hope that in about a month's time, we will be able to receive that," he said.

Nair said investment in the venture would be close to Rs 110 crore which includes expenditure involved in installation and training by Raytheon. ISRO would take care of the final operation and some of the software that's needed.

Officials said under the proposed commercial agreement, Bangalore-headquartered ISRO would buy the system from Raytheon.

"They have the technology and equipment. A lot of equipment needs to be bought," Nair said.